Insurers Want Off Hook In Chemtura Diacetyl Suits

By James Armstrong

Law360, New York (February 08, 2010, 3:41 PM ET) -- A group of insurers is suing Chemtura Canada Co. to avoid having to cover claims related to the illnesses allegedly caused by the company's butter flavoring chemical diacetyl, arguing that Chemtura misrepresented facts and refused to provide information regarding the exhaustion of its primary insurance.

The insurers, including Lexington Insurance Co. and National Union Fire Insurance Company of Pittsburgh, filed a complaint on Thursday against Chemtura and alleged primary insurer Zurich Insurance Co. in the Supreme Court of the State of New York.